It’s not hard to understand why novelty bars are proliferating across the UK.
Gen Z, alongside being blamed for woke sandwiches and the normalisation of a healthy work/life balance, also have the traditional British pub on their hit list.
With young adults more likely to be non-drinkers compared to the rest of the adult population, licensed establishments have had to get creative.
Spread across the younger, trendier pockets of London are ‘experience’ bars where punters can have a go at mini golf, actual golf, cricket, petanque and just about every other sport that is conducive to simultaneously holding a craft beer.
Recently released results from AIM-listed company XP Factory PLC (AIM:XPF) served to highlight the growing financial benefits of the trend.
XP Factory runs a chain of escape rooms and Boom Battle Bar, where friends and work colleagues can have a go at a spot of axe throwing, beer pong, crazy golf and shuffleboard.
In the six months ended September 30, XP Factory’s revenue increased by 33%, reaching £24.9 million compared to £18.7 million in the same period in 2023.
Gross profit for the group rose by 33% to £15.63 million, maintaining a gross margin of 63%.
Boom Battle Bar specifically reported 56% revenue growth and made up over £17 million of the group’s total sales.
XP aims to open between two and four new Boom locations per year, targeting high-footfall areas.
Then there’s Flight Club, an experience bar chain with 14 UK-based establishments and counting, which has even found success by gentrifying darts.
The average pubgoer outside of the inner-city hipster elite might be perplexed by the humble game of darts being rebranded as an ‘experience’. Especially when the experience is paired with artisan pizzas and cocktails.
Yet the concept has clearly found a market- Flight Club has a growing presence in the US and Australia following a successful expansion across the UK.
Flight Club’s founders believe they have “reinvented darts for the 21st century”, raising the question of what else is in the crosshairs of gentrification.
Watch out, conkers.